Stellantis is pushing electric vehicles in Europe… except that it’s planning a new diesel engine plant

At Stellantis, strategies now appear to vary significantly by continent. As we mentioned in a previous article, the automotive group is organized around three main strategic directions. In Europe, the priority remains electrification, with 100% electric vehicles, hybrid models, and even the goal of offering small electric cars priced at €15,000. In the United States, it’s almost the opposite: Stellantis is preparing for the return of the V8 engine, despite a new Hurricane six-cylinder engine capable of producing up to 600 ch. Because for Americans, power isn't everything—you also need the sound of a V8.

And in Latin America? That's a whole different story. Stellantis is set to open a new diesel engine plant in Argentina, with production set to begin as early as 2027. This announcement confirms that the group has no intention whatsoever of phasing out this engine across all markets.

Opening of a New Diesel Engine Plant

It was in a press release issued on October 19, 2026 Stellantis has officially announced this new industrial milestone. The group announced that its Ferreyra plant, located in Córdoba, Argentina, is preparing to open a new engine production facility. Starting in 2027, this plant will manufacture the 2.2 Multijet diesel engine, intended for both locally produced vehicles and those destined for export. This is a significant decision for Stellantis, which is thereby strengthening its industrial presence in South America. This new operation is part of a total investment of 385 million U.S. dollars, which has also enabled the Argentine plant to begin manufacturing two pickup trucks: the Fiat Titano and the Ram Dakota. At the same time, the complex continues to produce the Fiat Cronos, one of the most popular models on the Argentine market.

Diesel still has a bright future ahead of it

This announcement may come as a surprise given Stellantis’ European strategy. However, it primarily confirms that the group is now tailoring its powertrains to the expectations of each market. In Latin America, where pickup trucks play a major role, diesel remains a strong choice, particularly for professionals and drivers seeking torque, range, and cargo capacity.

And Europe hasn't completely turned the page on diesel either. We recently reported that Stellantis was developing a new 2.2 Multijet 48V hybrid diesel engine, with production set to begin in 2029 at the Pratola Serra plant in Italy. But unlike in Latin America, this new electrified powertrain will be reserved exclusively for commercial vehicles, notably the Fiat Ducato and its derivatives.

Argentina's historic factory enters a new era

The announcement comes as the Argentine website has just reached a symbolic milestone: 1.5 million vehicles produced since its opening in December 1996. The history of this plant is, in fact, closely tied to Fiat and Italy. As early as 1995, Argentine engineers were sent to Italy to receive training in the automaker’s production methods. Since then, the plant has manufactured the Fiat Palio, Siena, and Cronos, with production of the latter exceeding 500,000 units. Thirty years later, Stellantis has entrusted the plant with a new mission: the production of diesel engines.

Between electric vehicles in Europe, the return of the V8 in the United States, and new diesel engines in Latin America, Stellantis now appears to be prioritizing a strategy tailored to each continent rather than a single powertrain for all markets.